• Final investment decision on Stage 3A to increase north to south capacity
• $220 million investment for Stage 3B to enable continued early works and procurement for the Bulloo Interlink
• Expansion plan designed to minimize costs for customers by anticipating demand

APA Group (ASX:APA) today announces progression of Stage 3 of its East Coast Gas Grid (ECGG) Expansion Plan, which is expected to add approximately 30% additional transport capacity and address projected southern market gas shortfalls from 2028. The Stage 3 expansion includes a final investment decision (FID) on Stage 3A (ECGG 3A), with investment of $260 million to increase north to south capacity, and a $220 million investment for Stage 3B (ECGG 3B) to enable continued early works and procurement of long lead items for the Bulloo Interlink. The staged ECGG expansion plan is designed to minimize costs for customers by anticipating demand with a fit for purpose and responsive solution. Modelling undertaken by APA provides confidence that domestic gas delivered from northern supply markets can be delivered into southern markets at a cost, inclusive of transport, materially below the cost of imported LNG. APA CEO Adam Watson stated that the capacity expansion investments make it clear that pipeline capacity will not be a constraint to solving projected east coast gas supply shortfalls, and that the current Federal Government Gas Market Review provides the opportunity to implement a well-designed gas reservation policy to support upstream investment and ensure adequate volumes are supplied into the east coast.

APA's ECGG Stage 3 investments are expected to deliver financial returns above APA's return hurdles. The investments will be funded from APA's existing balance sheet capacity and form part of APA's ~$3 billion organic growth pipeline.

With projected ongoing strong demand for gas to the 2050s and beyond, APA is already progressing further investment to address projected shortfalls in the mid to late-2030s.